Background
As you are aware that Central Board of
Direct Taxes (CBDT) has made it mandatory
for the tax deductors to file TDS/
TCS statements with a threshold limit of
Permanent Account Number (PAN) of
deductees (95% in case of salary payments
and 85% in case of other payments
). Due to this stringent requirement,
the deductors were facing undue
hardships in filing the TDS /TCS quarterly
statements for no fault of theirs.
Realizing the hardships faced by the
deductors, CBDT has issued the instruction
on the website of NSDL prescribing
the procedure for filing the TDS statements
with insufficient deductee PAN.
The same is produced verbatim
The Procedure
As per instructions issued by the Central
Board of Direct Taxes (CBDT), it is mandatory
for deductors to file TDS/TCS
statements with a threshold limit of Permanent
Account Number (PAN) of deductees.
To facilitate deductors who
face problem in filing TDS returns because
of insufficiency of PAN of the deductees
and also to accommodate the
deductees who have intimated their
PAN, the Income Tax Department (ITD)
has specified the following procedure for
filing TDS/TCS returns:
Deductors can file a return containing
deductee records which meets the
specified threshold limit of PAN quoting,
i.e., a deductor can file a return containing
deductee details who have provided
valid PAN. It can subsequently file a correction
return with details of remaining
deductees.
Example as below:
- Suppose a challan payment of
Rs.1,00,000/- has been made for nonsalary
TDS against 100 deductees each with
TDS of Rs.1,000/-. Under the existing
procedure the deductor will have to quote
at least 85 PAN failing which his return
will be rejected.
- If there are only 50 deductees whose
PAN is available and the deductor attempts
to file a return with details of 100
deductees with PAN of only 50 deductees,
the return will automatically be rejected
at present.
- However, if he files a return with challan
amount of Rs. 1,00,000/- and with details
of 50 deductees with PAN, with deductee
total of Rs.50,000/-, the return will be accepted.
It means the deductor can furnish
the details relating to such deductees
whose PANs are available.
- The deductor can later file correction
returns with other details of remaining
deductees with the same challan details,
i.e., the challan amount should be the
amount deposited (in this case Rs.
1,00,000/-).
- The return will be accepted so long as the
TDS total of incremental deductees is
less than or equal to the balance of
Rs.50,000/-.”
|